Goldman Sachs analyst Eric Sheridan expects Amazon.com, Inc. ( AMZN ) to report a solid mix of revenue growth and operating margin expansion when the company releases its third-quarter financial results later this month.

The Details: Sheridan said Amazon ( AMZN ) should report relatively stable e-commerce demand but sees units sold continuing to outpace revenue due to lower average selling prices.

The Goldman Sachs analyst notes digital consumers continue to trade down to lower-priced items and said Amazon's ( AMZN ) investments in expanding product selection, including essentials, and meeting the consumer at lower price points are sound long-term strategies.

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Sheridan sees continued expansion in Amazon's ( AMZN ) AWS business as prior headwinds, including lapping cloud optimization and resumption of workload migration, wane. The analyst also highlighted the increasing contribution of AI workloads as companies increasingly seek AWS's flexible and cost-effective AI solutions.  

The Goldman analyst expects Amazon's ( AMZN ) report to reflect a strong advertising environment with the company's Ad supported video, connected TV and International segments building in scale. He also sees U.S.-based e-commerce advertising to remain solid relative to general merchandise value (GMV) growth. 

Amazon ( AMZN ) has not yet confirmed the date of its third-quarter earnings release, but it is expected towards the end of October. According to data from Benzinga Pro, the Street estimates the company will report quarterly earnings of $1.14 per share and revenue of $157.159 billion. 

AMZN Price Action: According to Benzinga Pro, Amazon ( AMZN ) shares are down 0.85% at $186.04 at the time of publication Tuesday.

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